Project Canvas is planned to be a joint venture organisation. Currently, it is intended that there will be 4 partners or shareholders, each with an equal 25% share of the venture (and corresponding equal 25% share of the cost). The BBC, ITV and BT were the initial 3 committed partners, with FIVE announcing on July 30, 2009 that it will join the organisation as the fourth partner[11]. Channel 4 has also stated it is interested in the Project, but is yet to formally sign up[5].
Control & governance of the venture
The organisation would have a management board[3-s.2.2.5] overseeing its activities. At the start of the organisation's life it is expected that each of the 4 shareholders will have equal representation on this board.
The BBC Executive has stated its desire to, at some point in the future, have other organisations with representation on the board. One criteria they have outlined for this board representation is sharing some of the costs of the joint venture[3-s.2.9.1] - which could also have the possible effect of decreasing the costs of the venture for each separate founding shareholder.
Founding shareholders
It is intended that there will be four starting shareholders. Four organisations so far have made in-principle commitments to be shareholders in the venture: the BBC, ITV plc, BT plc[3-s.2.9.1] and Five[11]. BBC, ITV & BT were all committed to the project from the time it was publicly formally announced in February, 2009, with Five making its public announcement in July 2009. TV broadcasters Channel 4 has also publicly expressed interest in becoming a partner in the venture[5.
The BBC
While the BBC is currently considered to be driving the venture, it needs approval from its own governing body, the BBC Trust, to officially continue being a part of the venture. This is related to [regulation |regulatory concerns].
The BBC's ambition is to create a service that provides BBC content on demand direct to licence fee payers through their television set on a zero contract free-to-air basis[3-s.2.13.5].
Syndication deals (such as iPlayer content on Virgin Media) help do this, but with the free-to-air terrestrial Freeview being far and away the most used delivery method for digital TV getting on demand video content onto that platform will serve more licence fee payers better [2-p.9] .
The BBC executive also sees its leading role in Project Canvas as a key part of it's proposals to Phase 2 of regulator Ofcoms' Public Service Broadcasting review[2-p.15], which is looking at ways for the UK market to continue its historical strength in public service broadcasting (PSB).
In the initial public consultation documents the BBC also detailed the anticipated cost of Project Canvas to them as a shareholder.
ITV
ITV is the biggest commercial TV broadcaster in the UK market. As a free-to-air terrestrial broadcaster (as opposed to subscription satellite or cable TV providers like Sky and Virgin Media) it is in ITV's own interest for free-to-air to continue to remain competitive against subscription TV options. One reason is because ITV receives a higher audience share - and therefore typically greater revenue - in households that only have Freeview and not subscription TV[6].
BT
Five
Five's head of strategy Keiran Clifton has been quoted as saying that Five would prefer to have a part in running any new platforms, instead of just providing content to/on it as they do with Freeview[12].
Other project partners
The BBC executive in their application to the BBC Trust outlined 3 further types of partners needed to make Canvas successful[2-p.19]: technology and device partners (eg. set top box manufacturers); distribution partners (eg. internet service providers); strategic partners (eg providers of additional content).
Organisations reported to be working with or talking to Canvas in some capacity include Cisco, Thomson, Humax, Adobe[7], & NDS[8], & Blinkx[10].
Internet service providers (ISPs)
Given the important role they will need to play in providing reliable and high speed internet access and the cost implications of this, the involvement & representation of ISPs is being considered separately. Possibilities include involvement as shareholders (with overall market size, and standards support and Canvas takeup as possible qualifying criteria), or a distinctly separate ISP forum[9-p.82].
Freesat and Project Canvas
Structurally, the BBC is proposing that Project Canvas management and operations also include the management and operations of Freesat (the one-off payment, satellite-based high definition offering, that is a joint venture between BBC and ITV)[2-p.18].
Reasons to do this include a commonality of purpose between the existing Freesat operations and Project Canvas, namely an upgrade path of some form to non-subscription digital TV (high definition).
There have been no strong reasons given publicly for why the activities of Project Canvas could not be undertaken as part of Freesat. The BBC executive in their submission to the Trust has said "it is not practical". Freesat currently has supplier relationships with some parts of the ecosystem that will be involved in Canvas, and there is also an internet (IP) connection specified in the Freesat hardware requirements[2-p.19].
From a brand perspective, it is expected that Canvas and Freesat will remain as distinct consumer propositions. Canvas might use or licence the Freesat brand to use in its own branding[9-p.85], in the same way device manufacturers currently can (if their devices meet the freesat technical specifications).
Freeview and Project Canvas
From a management perspective, Freeview and Project Canvas will not be related at all. The BBC in their application to the BBC Trust has cited "commercially sensitive reasons" for Canvas not being able to be implemented as part of Freeview management arrangements[2-p.18].
From a brand perspective, it is planned for Canvas and Freeview to remain as distinct consumer propositions. Canvas might use or licence the Freeview brand to use in its own branding[9-p.85], in the same way device manufacturers and other parties currently can.
Responsibilities of the organisation
The BBC Executive has stated that the Canvas joint venture itself will not do any of the following: manufacture, sell or support any related hardware; aggregate or sell to consumers any content; act as an internet service provider (ISP). [3-s.2.1.3]
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